GAIL seeks MoPNG's approval to swap Reliance gas with imported LNG

GAIL India has once again requested the Ministry of Petroleum and Natural Gas (MoPNG) to allow supply of gas to the small consumers of Andhra Pradesh, by swapping KG-D6 gas with imported LNG.

• These potential consumers have already signed Gas Transmission Agreements (GTA) with GAIL for supply of gas to their plants and GAIL has, in response, extended pipeline connectivity to these customers. However, the gas requirement of these small consumers, which is around 0.545 MMSCMD, is not being met on account of inadequate allocation from the KG-D6 fields. 
• The gas major has, therefore, decided to divert 2.594 mmscmd of KG-D6 gas being supplied to other power plants in the country, which would receive the RLNG instead. 
• It may be recalled that Reliance Industries Limited, GAIL, Reliance Gas Transportation Infrastructure Limited (RGTIL) and independent power producers in the state had signed commercial agreements, on March 17, 2011, involving swapping of gas to ensure additional gas supplies to power plants in the state. 
• Currently, RIL produces about 51 mmscmd of gas from the KG-D6 fields. Of this, 14 mmscmd of gas is sold to fertilizer plants, 24 mmscmd to power plants and the remaining 13 mmscmd to other sectors, including sponge iron plants, LPG, city gas distribution, petrochemical plants and refineries.